If you are familiar with bitcoins, you know the amount of energy needed before creating one of them. More electricity means that more carbon is also released into the air, so this only harms the environment more than it could help it.

Now, the carbon coin cryptocurrency is being seen as a possible solution to saving the planet by pushing the economic incentives for action by putting carbon cost.

Carbon Coin Cryptocurrency Can Save the Earth

At first, this might be a direct derivative from a science fiction book that you have perused, but this claim is believed to be realistic through extensive research.

For instance, Kim Stanley Robinson, sci-fi writer of the "Ministry for the Future," said that there is a way to help the environment through bitcoin. In the story, the carbon coin is the subject, where people are focused on supporting it through an agreement.

Just imagine that we are now heading for some changes that we are expecting. Hence, the coin, which contains carbon, might be a driving force to eradicate massive carbon emissions in the atmosphere.

In a report by Popular Science, some economists insisted that there could be a looming chance to salvage the planet using tools that we least expect to use. Furthermore, the proposals may appear feasible, but climate change reduction should be emphasized here to make them work.

The sci-fi novel was inspired by Engineer Delton Chen's proposal called the Global Carbon Reward, a currency that is based on carbon emission regulation.

There that somehow, a huge network of advocates would produce coins that could reduce carbon. Chen stated that it could be supported by the real-time reduction process of carbon dioxide.

Read Also: Tesla CEO Elon Musk Not the Richest Man Anymore After Bitcoin Tweet Cost Him $15 Billion Loss  

The civil engineer added that the carbon coin would be digital, plus it will have three points that should be given focus: the reduction of carbon dioxide, the management of the energy sector, and the impact of it in businesses. The concept of "positive pricing of carbon reduction" now enters the discussion, as stated in the French blog, CEPII.

The Argument for this Proposal

French economist étienne Espagne proposed an argument that even though the carbon cryptocurrency can salvage nature, it will not be possible to work with methods that make use of fees.

In addition, Espagne said that the economy will most likely suffer some instances, which could hurt it if the community relies on taxes. He continued that the use of incentives and fees will help to boost the project for lower-carbon energy, which also aims to contribute to lesser pollution.

Back to Chen's proposal, this would be a suitable solution, but it will impact fossil fuel production, so we cannot avoid any risks here. More likely, those who will buy the carbon cryptocurrency will be the private traders and those who depend on pension funds.

If you look closely, making carbon coins has a lot to consider, as it can collapse the economy. Chen said that it is like having car insurance where the carbon currency is the insurance for climate change. To lower the risk, every carbon coin should be issued.

Chen concluded that what he sees in the future is a joint force of the bank and the government to make his proposal achievable. He pointed out that people need the green 'financial' stimulus, which means that people are now ready for the transformation that they want to expect in the economy and environment.

Related Article: Bitcoin Rise - Will the Crypto Bubble Continue to Grow & Not Burst?

This article is owned by Tech Times.

Written by Joen Coronel